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Propane: Cheaper and Cleaner Than Gasoline?

June 10, 2008, 12pm PDT

The California Air Resources board is expected to approve a new propane-fueled engine this week, opening the door for an alternative fuel source for cars and trucks. Supporters say its also convenient because distribution channels already exist.

What's likely to be the primary reason that fleet operators would purchase propane-powered vehicles? Cost. Propane is priced between $2.39 and $2.59 a gallon, while diesel is over $4.50.

In addition, propane stacks up well environmentally against diesel and gasoline because it has lower levels of particulates, nitric oxide, and carbon dioxide emissions, Donaldson said. Fleet owners, such as schools, are also eligible to get a 50 cent per gallon federal tax credit.